PANAMA CITY, June 15 (Reuters) – Panama’s economy expanded 9.7 percent during the first three months of 2011 from a year earlier, the government statistics agency said on Wednesday. The robust quarter in one of Latin America’s top-performing economies was driven by traffic through the country’s transoceanic canal, as well as by construction and banking, the statistics agency said in a report. Panama’s economy appears to be accelerating after growing 7.5 percent last year. Annual growth was 8.7 percent in the fourth quarter. Helped by the $5.25 billion expansion of the Panama Canal and foreign investment, Panama’s economy will likely grow 9 percent this year, Finance Minister Alberto Vallarino said in a statement. The fast pace of growth has led come analysts to worry that Panama’s economy could overheat. The country’s annual inflation rate rose to 6.4 percent in May — its fastest pace in more than two years. Policymakers show no sign of curtailing aggressive infrastructure spending while pushing deficits to regularly modified legal limits, say critics. “This strong economic growth leads to questions of overheating,” Boris Segura of Nomura Securities said in a research note on Panama published on Tuesday, pointing to wage and price pressures, as well as government spending that is not reflected on budget accounts.
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June16th
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March8th
The audit and consulting firm Deloitte predicts growth for the Panamanian economy of between 6.0% and 6.5% this year, boosted by exports, construction and tourism.
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It is expected that during the period 2010 – 2015, the economy could register a real growth of gross domestic product at over 6% and a moderate inflation of 2.5% (although high in historical terms relating to Panama).
The level of public debt, which now stands at about 40%, could be reduced over the next five years to a level below 30% in 2015.
Forecast to rebound in exports as the recovery deepens consumer confidence in the advanced countries, according to said partner and financial adviser to the firm, Domingo Latorraca, who further noted that although there are good prospects for the world economy, not be exempt from financial instability.
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December2nd
A few days before the start of the new year, economic projections for next year are positive. The Panamanian economy is expected to grow between 5% and 7.5% over the next year. These are the calculations of experts on the matter and, of course, the government has projected the Gross Domestic Product to grow 6.5% in 2011.
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For groups of experts such as the National Competitiveness Center (NCC), the Center for Economic Studies at the Chamber of Commerce, Industries and Agriculture (CEECAM), the Research and Development Group, S. A. (INDESA) and Latin Consulting Group, the growth for next year will be grounded in the transportation sector, as well as telecommunications and trade. Although the outlook is for increased domestic production, Felipe Chapman, the Managing Director of INDESA says that some of the activities may be left behind in domestic production are agriculture, livestock and fisheries. Other indicators such as unemployment and inflation would suffer no major change from the numbers seen in 2010. (La Estrella)
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September16th
8:09 pm – PANAMA (ACAN-EFE). “The Gross Domestic Product (GDP) of Panama in the first half of 2010 was 9 thousand 940 million dollars, an increase of 6.1% over the same period last year, an official source.
The rate of increase, announced by the Panamanian Minister of Economy and Finance, Alberto Vallarino, during a public event was confirmed by the National Institute of Statistics and Census, which required the equivalent of 571.5 million dollars.
“A few months ago the Ministry of Finance revised the initial projection of 3.5% to 5% (growth), and after this, private sector economists and international organizations have made their own estimates put growth this year up 6% “Vallarino said.
“So let’s end the year on a better economic performance during the second half than the first half, and of course we will enter 2011 with his foot on the accelerator,” said Minister of Economy.
He said that this will contribute strong investment, labor and employment generation works to expand the inter-oceanic canal, which will intensify in the years 2011 and 2012.
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September16th
PANAMA SHINES
Posted in: News and Information
Latin America: Competitiveness Improves
MORE COMPETITIVE Panama is now the second-most competitive economy in Latin America behind Chile. (Photo: Juliette Passer)
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Panama sails up as second-most competitive economy in Latin America.
BY CHRONICLE STAFF
Latin America has improved its competitiveness the past year, with countries like Panama, Uruguay and Peru making particular progress, according to the 2010-11 Global Competitiveness Index from Swiss-based World Economic Forum.
“Reflecting the strong resilience within Latin America and the Caribbean in the face of the recent severe global economic downturn, the … assessment for the region for this year points to the important progress made by several countries in improving and reinforcing their competitiveness fundamentals,” the forum says in its report. “These results confirm the important strides the region has made in recent decades toward sounder fiscal management, increased market efficiency and openness, and export diversification, among other areas.”
Beyond setting Latin America on a more sustainable growth path in the long run, these reforms have helped it weather the global economic crisis that began in 2008, the forum adds.” In particular, the reduced debt levels (with longer maturity profiles) of most countries in the region, coupled with their increased foreign reserves, have been instrumental in reinforcing their resilience and ability to support their economy with stimulus measures,” it says.
The average Latin American score improved 0.07 points to 3.98, according to a Latin Business Chronicle analysis. A clear majority – 13 of 18 countries – improved their scores, while only three saw declines and another two ended up with the same score as last year.
Meanwhile, Venezuela is now ranked at the bottom in Latin America thanks to a drop of nine spots on the global ranking and keeping the same score as last year. Along with Paraguay (the second-worst economy), they rank behind countries like Ethiopia and Uganda when it comes to competitiveness.
PANAMA SHINES
Panama jumped from 8th place last year to second place among Latin America’s economies this year thanks to its score gaining 0.12 points to 4.33. Globally, it jumped from 59th place to 53rd.
“Panama posts one of the largest improvements in the region, climbing to 53rd this year thanks in large part to a more positive assessment of infrastructure quality, increased macroeconomic stability and technological readiness,” the World Economic Forum says. “This advance reflects the country’s recent important investment in upgrading its infrastructure, its sound macroeconomic management in recent times of crisis, its prowess in absorbing technology (ranked 7th for the variable on FDI and technology transfer), and its increase in ICT penetration rates. The country also continues to benefit from well-developed financial markets. Strengthening the quality of its educational system and increasing the flexibility of its labor market and the efficient use of talent are crucial to further reinforce Panama’s long-term growth potential going into the future.”
Panama jumped 21 places to 44th on infrastructure quality, 17 places to 29th on macroeconomic stability and 18 places to 41st on technological readiness.
“This advance reflects the country’s recent important investment in upgrading its infrastructure, its sound macroeconomic management in recent times of crisis, its prowess in absorbing technology …and its increase in ICT penetration rates,” the forum says. “The country also continues to benefit from well-developed financial markets.”
Panama can further improve its score by strengthening the quality of its educational system and increasing the flexibility of its labor market and the efficient use of talent, the World Economic Forum says.
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August26th
The National Institute of Statistics and Census (INEC) recently published an economic growth in Panama of 4.9% in the first quarter of 2010.
The INEC attributes this strong growth to activities related to the domestic economy such as mining and quarrying, construction, thermal power generation, transmission and distribution of electricity, trade, hotels and restaurants, telecommunications, port operations, air transport, insurance and financial auxiliaries, homeownership, private education and other community activities, social and personal services such as radio, television and other entertainment, as well as also a lesser extent growth in manufacturing, financial intermediation and the general government.
INEC’s report also notes that the activities directed to the outside world, showed a decrease, the cultivation of various fruits, fishing, wholesale trade in the Free Zone of Colon and Panama Canal operations.
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